Tuesday, May 11, 2010

IRS Identity Theft

A recent report by the Treasury Inspector General for Tax Administration (TIGTA) estimated that 1.2 million tax returns filed in 2007 reported wages earned by an individual using another taxpayer's Social Security number.

Individuals filed these returns using their own Individual Taxpayer Identification Numbers (ITIN) but worked using another individuals Social Security number and/or their name. ITINs are used to provide tax identification numbers to resident and nonresident alien individuals who are required to report tax obligations but do not qualify for Social Security numbers. The issuance of an ITIN number does not change their immigration status, entitle them to work or receive Social Security benefits.

Approximately 3 million ITIN tax returns were filed in 2007 and of those filed 40 percent (1.2 million) reported wages earned using another individuals Social Security number (this frequently occurs with illegal immigrants)...

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